NZD/USD clings to modest daily gains above 0.6900, eyes on US stocks
- NZD/USD is staying relatively quiet after closing in the red on Tuesday.
- US Dollar Index holds above 93.00 on Wednesday.
- Wall Street’s main indexes look to open near Tuesday’s closing levels.
The NZD/USD pair extended its slide on Tuesday and dropped to the lowest level of 2021 at 0.6876. On Wednesday, the pair seems to have gone into a consolidation phase and was last seen posting modest daily gains at 0.6925.
Risk flows help NZD limit its losses
Earlier in the day, the data from New Zealand showed that Credit Card Spending expanded by 6.3% on a yearly basis in June, compared to 27.2% recorded in May. Nevertheless, this reading failed to trigger a meaningful market reaction and the improving market mood helped kiwi erase a small portion of its losses.
On the other hand, the US Dollar Index continues to edge higher after extending its winning streak to four on Tuesday and making it difficult for NZD/USD to stage a stronger recovery.
There won’t be any high-tier data releases featured in the US economic docket and investors will remain focused on risk perception. Ahead of the opening bell, the S&P Futures are up 0.2% and the Nasdaq Futures are losing 0.15%, suggesting that the greenback is likely to preserve its strength in case US stocks fail to gain traction.
On Thursday, the US Department of Labor will release the weekly Initial Jobless Claims data. Additionally, June Existing Home Sales data from the US will be looked upon for fresh impetus.
Technical levels to watch for
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July 21, 2021 at 06:06AM